accc approves bhp iron ore deal
ACCC approves BHP iron ore deal From: AAP February 02, 2006
THE competition watchdog has approved BHP Billiton Ltd's iron-ore joint venture with Japanese steel giant JFE Steel.
The deal will see JFE take a 20 per cent stake in the Western Four deposit at BHP Billiton's Yandi iron ore mine in Western Australia, alongside the miner's two existing joint venture partners.
The partners will ship 16 million tonnes of iron ore a year to JFE Steel for at least 11 years.
The Australian Competition and Consumer Commission (ACCC) today gave final approval to the deal, signalling it was satisfied it would deliver a net public benefit.
"With expectations that the demand for steel in Japan will continue to be strong, the joint venture hopes to develop long term export relationships with purchasers in Japan," the ACCC said.
BHP Billiton will retain a 68 per cent stake in the Western Four deposit, which contains an ore reserve of about 115 million tonnes.
BHP Price at posting:
0.0¢ Sentiment: Hold Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)